Regulatory and high compliance costs are taking its toll on the Nigerian banking sector, Tony Elumelu, UBA Group Chairman has said.
In his keynote address at the Chartered Institute of Bankers of Nigeria (CIBN) 17th Annual Banking & Finance Conference, Tuesday in Abuja, Elumelu, who is also the Chairman of Transcorp Group, noted that these have stifled innovation and growth in the sector.
The CIBN conference has as its theme: Accelerated Economic Growth and Development: The State of Play and the Way Forward.
Noting that the banking sector remains the cornerstone of the economy, Elumelu, stressed that the sector continues to drive Nigeria’s economic growth.
He said, “To overcome these challenges, stakeholders—including government agencies, regulatory bodies, and banking institutions—must engage in constructive dialogue to foster a collaborative environment.
“By working together, we can build a more resilient banking sector that drives economic growth and supports the aspirations of Nigerians.
“The success of the Nigerian banking sector is felt beyond Nigeria. Nigerian banks have become multinationals, leading the sector across Africa, establishing themselves in the world’s financial capitals – and in doing so they have changed how our country is perceived, created pathways to opportunity and set themselves up as role models for our other industries.”
He called on the government to address the country’s electricity challenge noting that without access to electricity it will be impossible for Nigeria to industrialise.
“Power is a fundamental resource that impacts every aspect of life—from hospitals to homes and businesses.
“Nigeria cannot industrialise, our youth cannot be educated, without ensuring our abundant natural resources are translated into plentiful, robust power for all. A power ecosystem that encourages investment and unlocks our economy.
“To accelerate our progress, we must enable our power sector to guarantee reliable electricity for everyone,” he added.
On youth entrepreneurship, the Chairman & Founder of Heirs Holdings Group and the The Tony Elumelu Foundation said that the government must incentivise the country’s young population to embrace the challenge of driving economic growth.
“We face a choice, either we offer our young a future where opportunity is outside Nigeria, forcing our best and brightest to leave, to undertake perilous journeys, that split families and destroy lives – or we create a Nigeria, where value and wealth creation can take place at home, where our young can realise their dreams in Nigeria, for Nigeria.
“By supporting their businesses and creating an enabling environment, we can empower SMEs to catalyse our progress during these transformative times,” he further said.
He urged the government to urgently tackle the country’s security challenge in order to attract investors
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